Family Office | Xu Zhengyu: Plans to Expand Tax Incentives to Cover More Asset Classes

The government has been actively attracting family offices to Hong Kong in recent years. Financial Secretary Paul Chan Mo-po said in an interview with Bloomberg Television that the government plans to expand the scope of tax incentives for family offices and funds to cover more asset classes.

Chan stated that the proposed asset classes include digital assets, precious metals, and private credit. The government also proposes legislation to provide tax benefits for corporate treasury management if companies wish to conduct internal cash management through Hong Kong.

He expects that earlier this year, legislation to approve tax incentives for family offices will be enacted, and related proposals for corporate management will be submitted for approval soon.

The Middle East conflict remains unresolved. Chan said that this week, the government will continue to host guests from the region at the “Yuzhou Xiangjiang” summit forum, noting, “We see increasing interest from Middle Eastern family offices.” Additionally, a family office from Morocco has expressed and confirmed its intention to expand its business in Hong Kong.

He said that through Invest Hong Kong, about 156 family offices have indicated plans to establish or expand in Hong Kong.